Best States To Retire: Fixed Income Edition

A while ago we did an article on what states are best to retire in based on the tax situations there. But say that you’re not too worried about taxes, because you have a fixed income.Then you have a little more room to work with.

A fixed income means you aren’t going to have to stretch your savings out to infinity and beyond.

And that opens up a lot more options when considering what states you can call home next. After all, you have a combination of both your savings and the fixed income to help facilitate your way through retirement. So, that ends up making things a little more flexible.

However, that also means that finding a place that is relatively cheap when it comes to the cost of living is imperative. Savings can only get you so far and living within your means is the name of the game.

So, you want to really think about what state would treat your money best. Where can you spend the rest of your life without having to worry about the finances of everything? Well, we’ve cracked the code and here are some of the best states to retire in when

• What does it mean to live on a fixed income
• What states help the money last
• Why is it so important to keep budgeting in check when retiring

What Is A Fixed Income?

If you worked as a physician in the US, chances are you’re going to retire with a fixed income situation.

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A fixed income is when senior citizens, who are no longer working, make their income through a fixed payment. These could be through a system like a government pension, Social Security or other retirement accounts.

Most working adults get the benefit of a pension in their retirement, especially those in the healthcare sector. And it will be these regular cheques that will help them pay rent and bills when they are no longer able to work.

For doctors, this is even more true because we tend to have a later retirement age.

But it can be hard to make ends meet on retirement savings like fixed income. There aren’t a lot of options when it comes to growing your income, because it’s not like you can go out and get a job to supplement the fixed amount coming in.

And really, the economic crisis currently ongoing has left a lot of us scared, even when a lot of us are still a good 20 years away from retiring.

I mean, sure, $2000 per month sounds great in theory. But the rent alone costs around the same in most major cities in the US. It’s why fixed income can feel like a double edged sword when it comes to actually living somewhere.

So, What States Can I Retire In?

This is exactly why it’s so important to search around and see what states are actually livable for you if you’re going to be depending upon a fixed income. Luckily, there are a lot of places in the U.S. that won’t drain you dry over basic living expenses.

Here are the cheapest states that would make that fixed income last!

1. Mississippi

So, this might come as a surprise to the medical fraternity but Mississippi is actually not all that bad for a retirement spot.

I know, I know. The healthcare system there does leave a lot to be desired but it does have one of the highest beds per capita rates in the entire country. And besides, there’s a lot more to retirement than just hospital visits. In almost all other regards, Mississippi is a great retirement state.

It has a really low cost of living, meaning you can live comfortably within your means. The housing market is also great, with beautiful homes available that don’t put you into lifelong debt. And there is very little crime, so you can feel safe in said home.Living in Mississippi is great for your bank account, honestly.

Not to mention the weather. The summers are beautiful and warm, albeit humid, and they compliment the warm community that is the soul of the Mississippi. It’s a warm, vibrant place to spend the rest of your life.

2. Delaware

Want to experience all the appeal of metropolis states like the Big Apple without having to shell out that New Yorker cash? You might want to consider Delaware for your forever home.

Delaware is famous for its gorgeous ocean fronts and lovely small town vibes, but what nobody is talking about is just how much retirees love settling there. And it’s not hard to see why.

Its beautiful coastline is only made better thanks to the affordable housing there. Like, you could actually own a home in Delaware without going bankrupt, thanks to the tax benefits the state provides. It’s why it has the highest rate of homeowners in the entire U.S.

And if you do get a home in a Delaware city, you’re in luck. There are zero sales taxes on goods there. It is one of the only states in the U.S. to have this tax break, so you might as well enjoy it.

While Delaware is a relaxing place to be, if you’re in a more empire state of mind? Then New York is close by enough to visit!

3. Alabama

Do you want a real community vibe after you retire? Look no further than Alabama!

I mean, that’s not the only reason to retire to Alabama, obviously. This Southeastern state is really underrated, despite offering some of the best perks a person could get while living on a fixed income.

I’m talking about a cost of living that is nearly $500 less than the national average, low taxes across the state, and much more. 

The affordable housing is another great benefit, that is only elevated when you consider just how friendly people are in Alabama. Really, it’s easy to see why retirees are so attracted to Alabama, with its quaint towns and great food options that won’t feel like restaurants are committing daylight robbery.

A lot of the other states in the U.S. put taxes on Social Security, but Alabama does not. Making it one of the ideal states to retire in.

4. West Virginia

Mountain Mama, anyone? Just me? Well, you might be singing along too, if you knew just how great West Virginia is for someone on a pension.

Housing is already a whopping 20% less than the average in the U.S., leading to really affordable homes. But what’s more is that utilities are also on the lower side, with things like groceries, clothing and more being around 6% lower than the entire country.

This means you get to live more lavishly in West Virginia, even on a budget. 

But there are a couple of issues for retirees thinking about settling in the Mountain State, namely the weather. Winters are harsh in West Virginia. But hey, if you catch a cold? The healthcare is pretty reasonable!

5. Wyoming

We’ve talked about Wyoming before, and how it was a great retirement prospect because of its tax policies. But there is a lot more to the Rocky Mountain state.

Firstly, it has a very low population, meaning housing is automatically cheaper across the board. But that doesn’t mean the people are unfriendly, quite the opposite actually. And you get to enjoy its lush natural parks without having to really plan much, since they’re all right there.

Now, the actual cost of living is pretty insane. You can comfortably raise a family on $70,000, because stuff like groceries and electricity are just that cheap. So is access to healthcare, for that matter.

Really, a lot of people like Wyoming for its serenity. Because who doesn’t want to retire to a quiet but peaceful place after the hectic life of working in medicine, right?

6. Tennessee

Let it be known it took me true power to not make a ‘Ten I see’ joke here. But when it comes to affordable retirement, Tennessee honestly does get a ten out of ten.

I mean, you truly can live in Tennessee quite comfortably, thanks to its low cost of living. Because it doesn’t impose an income tax, it makes budgeting that much more simpler.

Tennessee has affordable groceries, amenities and more, making it one of the cheapest states to retire in. But that doesn’t mean it’s a sleepy state. Far from that, Tennessee is bustling with tourism spots that help generate revenue. It’s this that keeps costs so low for its residents.

With affordable healthcare, it’s no wonder so many retirees are flocking to Tennessee. It is one of the top 10 cheapest states in the country.

Final Thoughts

Honestly, I get why people are turning to the lesser known states for retirement. As nice as it would be to imagine we can live it up in LA on a family physician’s pension, chances are that’s not going to be the case.

Inflation has kicked our butts and really, anything affordable would work now. And if you get some bonus stuff like great scenery and a warm community, well, that can’t be beat!